Keppel Land, Rustomjee to co-develop township in Mumbai

Singapore based Keppel Corporation’s property arm Keppel Land has entered into a joint venture with India’s leading realty developer Rustomjee Group to develop an integrated township project called Urbania span across 127 acres (51.4-hectare) in Thane, a district within the Mumbai Metropolitan Region.

Keppel said that this is first of its kind development through collaboration between a Singaporean developer and an Indian developer for a township in the Mumbai Metropolitan Region. Since its launch in 2006, the Urbania township has housed 2,700 residential units among extensive amenities.

In this township development, Keppel Land will acquire a 49% stake in the joint venture company Kapstone Constructions Pvt Ltd, through a wholly-owned subsidiary, for around Rs 410 crore (about $78.2 million).

Earlier, Keppel Land has also entered into a joint venture with Bangalore-based Puravankara Developers. Keppel Puravankara Joint Development has acquired a 7.6-acre land parcel in Bangalore for Rs 405 crore to develop its first commercial office-cum-retail project, while the joint venture with Rustomjee will be developing an integrated township in Thane, Mumbai, first such project for Keppel in India.

After the completion of the acquisition, Keppel Land and Rustomjee Group will jointly develop 7,400 homes and retail units with a total gross floor area of about 5 million sq.ft. The development cost of the 1st phase will comprise approximately 460 residential units which is expected to cost around 4 billion rupees ($76.8 million). Completion of the acquisition is subject to the fulfillment of some conditions model and is supposed to occur around the first quarter of 2020.

Chairman of the Rustomjee Group Mr. Boman Irani, said “In our effort to continue serving the increasing residential and commercial developments of the Mumbai Metropolitan Region, we are happy to ally with Keppel Land, an established leading developer from Singapore with a legacy of over a hundred years and with an international experience in key Asian markets. Our communications with the Keppel Land team have been an exceptional experience of sharing and learning. We are convinced that this joint venture will be a win-win partnership. This is the beginning of two large developers coming together to build a strong partnership in the Mumbai Metropolitan Region market and we look forward to great growth together.”

Mr. Ho Kiam Kheong, President (India), Keppel Land, said, “Our collaboration with the Rustomjee Group for this developing integrated township is in line with Keppel Land’s policy to strengthen our presence in high-growth areas such as the Mumbai Metropolitan Region. The partnership has landed on a rare opportunity of development of such scale in Mumbai, which is experiencing rapid demand for quality homes.

“We will benefit the Rustomjee Group’s broad network and extensive knowledge of the local property market, as well as Keppel Land’s international expertise and strong fulfilling capabilities to develop a highly liveable and vibrant township.”

The deal is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corp for the current financial year.